ABA Banking Journal - September/October 2016 - (Page 42)
geographic targeting feature to push notifications to
customers whenever they're near a discount, incenting
them to shop local and pay with their debit cards.
"Geocoding works extremely well," says the bank's
president and CEO, Peter Schork. "When you're
driving down the street and you pass a car dealership
or restaurant, [the app] will buzz you and alert you
that you have a discount. It really is effective." The
app can also be programmed to alert customers of
things like mortgage and auto rates when they visit a
realtor's office or a local car dealership, keeping the
bank top-of-mind at crucial financial moments.
As an institution with a large number of commercial
banking clients-particularly restaurants-Schork says
Larky was an especially good fit for Ann Arbor State
Bank. "It's a two-edged sword," he says. "One, we have
more debit card usage, interchange fees and people
banking with us more, but also, we are a major player in
the Ann Arbor downtown restaurant world, so we're very
interested in helping our clients get additional business."
The bank rolled the program out in early 2016, and
Schork says his branch and commercial lending staff
were instrumental in spreading the word. "We have
used Larky as an opportunity to meet with our business
customers and say 'we have something to offer you that's
in essence a no-cost solution'," he says. "We have visited
a hundred of our clients and many have signed up to
give discounts on products." He adds that in addition
to encouraging adoption among current debit card
users, the bank has also begun targeting non-checking
customers-mortgage customers, in particular-using
"Local Loyalty" as an added incentive for them to
deepen their relationship with Ann Arbor State Bank.
And the feedback-from customers and businesses
alike-has been overwhelmingly positive. "We have
definitely seen more debit card usage," Schork
says. "We have people using their debit cards
more-not just at these places, but in general."
The future of banking presents many unknowns.
But if there's one thing that's a sure bet, it's that
banks will continue to compete more aggressively
than ever for market share and depth of wallet. And
as these banks-and many others-have learned,
enhancing the customer experience through debit card
rewards can help give a competitive edge.
MONICA C. MEINERT is assistant editor of the ABA Banking Journal.
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Table of Contents for the Digital Edition of ABA Banking Journal - September/October 2016
CECL FROM THE INSIDE: A CONVERSATION WITH FASB’S RUSSELL GOLDEN
WHERE ‘HABITS OF ECONOMY’ WERE SHAPED
CARD-LINKED REWARDS GIVE BANKS A COMPETITIVE EDGE
ABA COMPLIANCE CENTER INBOX
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS
ABA Banking Journal - September/October 2016